Loan Calculator
Calculate monthly payments, total interest, and full amortization schedule.
Results
Enter loan details and click Calculate.
Advertisement
Frequently Asked Questions
Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. This is the standard amortization formula.
An amortization schedule shows how each payment is split between principal and interest over the loan's life. In early payments, most goes to interest. Over time, more goes to principal as the balance decreases.
Even a 1% difference in interest rate can significantly affect total cost, especially for longer loans. On a $200,000 mortgage over 30 years, 1% more in interest adds roughly $40,000 in total payments.
Extra payments reduce the principal faster, which decreases the interest you owe in future months. Even one extra payment per year can cut years off a mortgage and save thousands in interest.